Not upheld: rate switch failure and service issues complaint against HSBC UK Bank Plc

Decision detail

Summary

Mr and Mrs T complained that HSBC failed to implement a requested mortgage rate switch and did not inform them that both parties needed to accept the offer. HSBC's fixed rate was due to end 31 January 2025, and Mr T spoke to HSBC on 6 and 8 January 2025 about switching rates. Mr T accepted an offer on 7 February 2025, but by then the offer had expired and the mortgage had reverted to SVR. The ombudsman reviewed phone recordings from the January calls and found HSBC clearly told Mr T that both he and Mrs T needed to sign the offer, with Mr T indicating understanding. Since only Mr T accepted before expiry and Mrs T did not, HSBC was not obligated to implement the switch. The complaint was not upheld, and HSBC's £75 compensation offer for service issues was upheld as sufficient.

The Ombudsman's reasoning

The ombudsman found that HSBC adequately informed Mr T during the phone calls that both he and Mrs T needed to accept the offer, with Mr T's responses indicating understanding. The offer document itself clearly showed both names requiring signatures. Although HSBC could have made its process clearer and more transparent, it provided sufficient information about what needed to be done. Since only Mr T accepted the offer before it expired on 31 January 2025, and Mrs T did not accept it, HSBC was not obligated to implement the rate switch. The £75 offered by HSBC for service issues is considered sufficient.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website